Hanuman Steel Wires Pvt. Ltd. vs. ITO, Ward-3(3), Kolkata

Parties Involved

Facts Summary

The assessee, Hanuman Steel Wires Pvt. Ltd., filed its return of income declaring a loss of Rs.25,70,481/-. The Assessing Officer added Rs.1,10,00,000/- on account of unexplained share capital and share premium. Penalty proceedings were initiated under section 271(1)(c) of the Income Tax Act, and a penalty of Rs.35,68,950/- was imposed. The assessee appealed against the levy of penalty. The Tribunal restored the matter to the Assessing Officer for a fresh assessment, which resulted in a reduced addition of Rs.32,00,000/-. The assessee contended that the penalty should be reduced accordingly.…

Legal Issues

• 1. Whether the penalty levied under section 271(1)(c) of the Income Tax Act should be reduced in light of the reduced addition?

Judgment Outcome

Decided in favour of Assessee.

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